PRIVATE LABEL LANDSCAPE
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1 PRIVATE LABEL LANDSCAPE Development in BRIC markets planetretail.net ALEX HAMILTON Senior Advisory Analyst
2 About Us Planet Retail is the leading provider of global retailing information, from news and analysis to market research and digital media. Covering more than 9,000 retail and foodservice operations across 211 markets around the world, Planet Retail provides global data and deep insight to 30,000 people working in influential retail, technology, banking and consultancy organisations worldwide. For more information please visit PlanetRetail.net Planet Retail is part of WGSN Group: Trace One and Agentrics PLM merged in January 2012 to become a global leader in collaborative solutions for the private label industry. Our mission is to drive food and non-food product innovation, support brand protection, and accelerate time-to-market for retailers, manufacturers and food service companies. The group is committed to enabling collaborative processes between retailers and manufacturers thereby optimizing the sourcing, tendering, launching and development of consumer goods, while controlling product information and ensuring product and food safety. This not only supports the protection of brands, but also maximizes profitability and competitiveness throughout the product lifecycle management process. The solutions provided by Trace One-Agentrics PLM are used by over 30 leading retailers worldwide, including 12 of the top 25, as well as 12,500 manufacturers in over 110 countries. Trace One has a global presence in 14 countries (Australia, Belgium, Brazil, China, France, Germany, Ireland, Japan, Spain, South Africa, South Korea, Sweden, the UK and the USA). For more information please visit All images PlanetRetail.net unless otherwise stated. Researched and published by Planet Retail Limited Company No: (England & Wales) Registered Office: : c/o Top Right Group Limited, The Prow, 1 Wilder Walk, London W1B 5AP Terms of use and copyright conditions This document is copyrighted. All rights reserved and no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form without the prior permission of the publishers. We have taken every precaution to ensure that details provided in this document are accurate. The publishers are not liable for any omissions, errors or incorrect insertions, nor for any interpretations made from the document.
3 Contents 1. Introduction 1 2. Setting the Scene 2 3. Market Analysis Brazil 4 Russia 6 India 8 China Summary 12
4
5 1. Introduction In step with economic development, the so-called BRIC markets the acronym referring to Brazil, Russia, India and China gained significant investor attention at the turn of the century, and have since gone on to firmly establish themselves on the world stage. Although the attractiveness of each market has diminished slightly in recent years, parallel with a new wave of emerging markets, they remain prominent in the mind of retailers as a real, or potential, source of revenue growth; meaning modern trade is likely to develop further across these markets in the near, mid and long-term. Indeed, using an in-house model, Planet Retail estimates that the share of modern trade across the BRIC markets will almost reach 25% in 2020, from 22.4% in Market share of private label products is therefore set to develop in step, with growth spearheaded by international retailers and supported by local players in most instances. However, there are numerous challenges to overcome in each market for own brand offerings to take root both instore and in the mind of the consumer. As such, the latest report in the Trace One/Planet Retail Private Label series will provide an assessment of the own brand landscape in each of the BRIC countries, from evolution to outlook, before comparing and contrasting retailer strategies in these markets. BRIC: Share of Modern Trade, f (%) Share of Modern Trade (%) Note: f - forecast Source: Planet Retail Planet Retail estimates that the share of modern trade across the BRIC markets will almost reach 25% in
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